Sebi Chief Warns Against Speculative Bets in F&O Segment

Sebi Chairperson Madhabi Puri Buch has raised concerns about speculative bets in the futures and options (F&O) segment, calling it a 'macro issue' affecting the broader economy. She highlighted the significant financial losses among youth and households, and Sebi's proactive stance to curb such activities. Additionally, Buch noted the regulatory arbitrage by fininfluencers and the anticipated growth in the industry AUM.

Sebi Chairperson Madhabi Puri Buch has issued a stern warning against speculative bets in the futures and options (F&O) segment, describing the trend as a 'macro issue' impacting the broader economy. She pointed out that household financial savings are being diverted into speculative trades, causing significant financial losses among the youth.

At an SBI MF event, Buch cited research indicating that investors lose in 9 out of 10 F&O trades. She stressed that the sharp rise in volumes compelled Sebi to take a proactive stance to dissuade investors from participating in the segment due to its impact on market stability.

Furthermore, Buch expressed concerns about regulatory arbitrage by fininfluencers, hinting at upcoming consultations to address the issue. She also highlighted that the fund house's assets under management (AUM) have surpassed Rs 10 lakh crore and predicted they would double to Rs 20 lakh crore in three years.

(With inputs from agencies.)